Where Does Amazon.com Inc. (AMZN) Rank When It Comes To Price-To-Earnings Ratio?

Amazon.com Inc. (NASDAQ:AMZN) trading with an addition of $57.42 to $3319.43 on Thursday, an upside of 1.76 percent. An average of 2,773,380 shares of common stock have been traded in the last five days. There was a gain of $30.17 in the past week. The last 20 days have seen an average of 2,937,935 shares traded, while the 50-day average volume stands at 3,095,150.

AMZN stock has decreased by -7.05% in the last month. The company shares reached their 1-month lowest point of $3,176.25 on 10/04/21. With the stock rallying to its 52-week high on 07/13/21, shares of the company touched a low of $2881.00 and a high of $3773.08 in 52 weeks. In spite of this, the price is down -12.02% from the 52-week high.


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Insider Transactions

36 days have passed since Amazon.com Inc. (AMZN) last reported insider trading activity. RUBINSTEIN JONATHAN, who is Director, most recently acquired $286 shares at $3500.00 per share on Sep 01. In this transaction, the insider spent $1,001,000. CEO Worldwide Consumer, Clark David H, disposed of 105 shares at a price of $3211.90 on Aug 23. The insider now owns more than $337,250 worth of shares. Prior to that, President and CEO Jassy Andrew R went on to Sale 492 shares at $3211.90 each on Aug 23. An amount of $1,580,255 was transacted.

Valuation Metrics

Amazon.com Inc. (AMZN) has a trailing price-to-earnings (P/E) ratio of 56.85, which compares with the 21.00 for the broader industry and 20.45 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, Amazon.com Inc.’s PE ratio has ranged between 303.51 and 55.56. The stock’s beta is 1.16. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.73, the price-to-book (PB) ratio at 14.35, and the price-to-cash flow ratio at 233.89.

The company has a payout ratio of 0.00%.

The quick ratio of Amazon.com Inc. for the three months ended June 29 was 1.00, and the current ratio was 1.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.58 and a total debt to equity ratio of 0.59 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 40.70% against a 5-year average of 24.3%. Amazon.com Inc.’s EBITDA margin for the year ending June 29 is 10.25%, while its operating margin for the same period stands at 6.70%. Its gross profit as reported stood at $152.76 billion compared to revenue of $386.06 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Amazon.com Inc.’s return on assets was 9.20%, compared to 5.3% over the last five years. In the past year, the return on investment has been 13.90%, and the 5-year average is 11.5%. Meanwhile, the return on equity (ROE) for the past 12 months has been 29.90% and the 5-year average holds at 21.0%. For the broader industry, ROE averaged 10.33 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Amazon.com Inc. had $49.51 billion in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $113.08 billion in the quarter, while revenues of $108.52 billion were grew 21.37%. The analyst consensus anticipated Amazon.com Inc.’s latest quarter earnings to come in at $12.3 per share, but it turned out to be $15.12, a 22.90% surprise. For the quarter, EBITDA amounted to $15.74 billion. Shareholders own equity worth $506.44 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Amazon.com Inc. (AMZN) price momentum. RSI 9-day as of the close on 06 October was 47.99%, suggesting the stock is Neutral, with historical volatility in this time frame at 23.62%.

As of today, AMZN’s price is $3,254.25 +0.92% or $30.17 from its 5-day moving average. AMZN is currently trading -4.85% lower than its 20-day SMA and +1.37% higher than its 100-day SMA. However, the stock’s current price level is -8.68% below the SMA50 and +3.40% above the SMA200.

The stochastic %K and %D were 31.85% and 18.87%, respectively, and the average true range (ATR) was 66.98. With the 14-day stochastic at 54.92% and the average true range at 65.66, the RSI (14) stands at 46.08%. The stock has reached -20.50 on the 9-day MACD Oscillator while the 14-day reading was at -55.36.

Analyst Ratings

Cowen reiterated its an Outperform rating on Amazon.com Inc. (NASDAQ: AMZN), but raised their price target to $4400, indicating a potential price increase of 32.55% for the stock.The consensus rating for Amazon.com Inc. (AMZN) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell AMZN, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 7 analysts, while 43 others rate it as a “buy”.

What is AMZN’s price target for the next 12 months?

Analysts predict a range of price targets between $3775.00 and $5000.00, with a median target of $4105.00. Taking a look at these predictions, the average price target given by analysts for Amazon.com Inc. (AMZN) stock is $4153.71.

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